Don't Bet on an Amazon Stock Split

8/6/2013 2:51PM

With its stock price climbing to record highs over the last few weeks, Amazon.com could be considered a prime candidate to split its stock. But MarketWatch's Rex Crum says few are expecting a split anytime soon. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... I ... welcome to Digits I'm Simon Constable ... Amazon shares are hovering around three hundred dollars in mid afternoon Tuesday but should you expect a stock split ... no ... says MarketWatch's Rex Crum adding joins us now from sentences go Rex thanks Ming now ... deadline to be here ... so normally when stocks not to get you know ... elevated nominal price as people think ... maybe that should be a stock split and it'll be easier for small investors to buy ... one thing you say no ... well it's because the whole situation with Amazon right now they haven't done a stock split in almost fourteen years ... and they're not really showing any signs they're interested in it ... obvious that to me of the things going on right now and the stock split isn't anything that's in the works for them ... on the impatience of the top there is almost the sun to think about some like that when stock reaches a certain point in people start thinking gosh it would be easier for other people to get in but ... noted the display of more shares of makes it harder to ... again upside to earnings if you do the salt is there's a lot of factors involved why Amazon's not going to do this leaves the food time being ... on the back and has been looked at what when the stock splits up apparantly of ten nineteen ninety eight two for one split that to eighty five ... basic stall this that ... from nineteen ninety nine Swindon fifty four goals to three for one split and September ... of nineteen ninety nine hundred and nineteen dollars and a sham obese they were aware of wealth to at least two of those those three ... all already ... now one other things when you think about a company that so I'm you know looking on its earnings it's based on the number of sheds out that with better off portions of any any fish that ... will be a lot ... does last May kit haunt the two have an impact on earnings per share when you have more chess ... yes and so that's one of the issues that Amazon seems to faze from time to time as he says that earnings per share an especially are consistent with their consistency with their operational earnings so ... he owed at least with this thought it's gonna be harder to him get those better earnings per share which ... a lot of people dislike seeing ... them ... not to be something of a mom and as the venom Amazon's not paying its dividend now that that's leading to ... some losses ... on its last earnings period ... going forward you have a sea of time when Amazon says he now I think we ought to be considering doing mass ... it could happen but we're going to see a slowing of a lot more cash and marketable securities cash equivalents all that stuff on the books ... the company that is well known as Amazon and as the desert is big and that almost everyone here is that some kind of ... odd interaction with the company buying something ... they only have about seven point four billion dollars on the books they cut contrasts that Apple it's got about a hundred and thirty plus billion dollars ... on Islam were kept recovery like Apple to do something like that ... Amazon though ... I feel it's hard it's still a retail company and it needs to build up its distribution network which it's doing right now just last week or so they say they were going to ... the five thousand more people nationwide for about seventeen other distribution centers ... they believe and plowing the money back into the company and that's the best investment bets than that they can do with ... other cash on him ... not in warm Buffett is famous for ethanol wanting to spoil acts of Berkshire Hathaway shares which have now what one while from now I think that the yen to twenty years ago at two thousand but that's it ... you know over a hundred thousand ... The giving you the issue ... that was a says look it does not seek re any value is now on the upcoming grounds that it doesn't matter how many times do you ... slice the pizza romped that still want pizza and it doesn't really matter how many times you slice this book ... it's still ... one company ... yes I think there is I think there is some of that play there I mean you need to look alike of his right now I mean pools from nine hundred dollars a share ... and they're not teaching others to ... succeed to split the stock although it would ... appeal directly allow lot more people to get in them and buy the shares ... of this I think this is a growing sense that this is not the time ... to do this one just because the stock seems to be getting expensive based on the price at the end of the day ... on and ... on to remark Rex Crum all MarketWatch we appreciate time so ... I'm Simon Constable you can read mall man story on MarketWatch talk calm anytime about the vs day life now ...